The price of Stellar (XLM) has seen a 60% decline since its November peak. It has been trading below a descending trend line since then, bouncing below it as resistance.
XLM price has been forming the typical lower high and lower low pattern, which is common in a downtrend, and the structure is still intact.
However, the latest price action shows that Tuesday ended in the green, with a 6% increase as the price rebounded from a strong support level around $0.23 (identified with the white rectangular pattern on the chart). At this time, BTC also had a 5% increase and closed with a bullish candle.
This is good for the bulls, as it shows that they had some strength to fight back and defend this key level. However, the question will be how long they can maintain this as long as the crypto market remains down.
A quick look at the Relative Strength Index (RSI) shows a reading of 36, with the RSI line below the RSI-based moving average—a strong sign of resistance and overall market bearishness.
Stellar Price Prediction for Today
For today, the price of XLM could first retest the support zone from which it bounced yesterday.
This is a common phenomenon in the market: when the price bounces off a place or breaks into a new zone, it often goes back to that zone for some liquidity.
In the current case of Stellar, going back to test the $0.23 support zone is expected. If the bulls are able to defend this level, we could see a bounce today. The key factor to look for here would be a close above the drawn support zone.
However, if the bears are able to break below the support level—likely only if BTC dips to yesterday’s low of around $76k—then we could see an intense battle at this support level today and a possible close below it if the bulls give up.
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This key support level is crucial today, and we want to see it retain the XLM price for a chance to continue a bullish recovery back to the descending trend line in the coming days.
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